Unrecovered Costs For Utility Services Furnished To Non-Appropriated-Fund And Non-Government Activities

LCD-74-338: Published: Feb 7, 1975. Publicly Released: Feb 7, 1975.

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GAO reviewed weaknesses in the Department of Defense's (DOD) administration of user charges for utility services furnished to non-appropriated-fund and non-government activities at military installations.

GAO noted that: (1) weaknesses found in connection with charges for utilities used by non-appropriated-fund activities had not been corrected; (2) for fiscal year 1973, about $370,000 in utility charges was not collected from users at the 12 installations reviewed; (3) unrecovered utility costs could amount to much more DOD-wide; (4) DOD states the military departments lack of uniformity in following regulations might be attributable, in part, to the broad language of DOD Directive 1330.2 and promised that the language would be revised; (5) DOD, however, has not changed the language, and military department and installation-level implementation continues to be inconsistent and in need of improvement; and (6) military department policies and installation practices have operated either to exclude altogether or to inconsistently treat charges to non-appropriated-fund and non-government activities for utilities services.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Secretary of Defense should re-evaluate and clarify policies for collecting utility charges from nonappropriated-fund and non-government activities. Specifically the Secretary should: (1) establish more definitive criteria regarding the extent to which open messes providing essential feeding are exempt from utility charges and require reimbursement of utility charges for activities not related to essential feeding; and (2) have the Navy charge for sewage and refuse disposal. The Secretary of Defense should ensure that periodic internal reviews are made to insure resonable control and collection of all proper charges.

    Agency Affected:


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